Capital Research Group violates securities laws once again.
Capital Research Group joins long line of fraudulent promoters of LocatePLUS Holdings Corp. (OTC BB: LPLHA) such as Lancer Fund director Dr. Richard Geist otcfn.com and securities crook Geoff Eiten of otcfncom who also paid Geist to write a buy report on LocatePLUS. Anyone care to place a bet that the third party is IR Geoff Eiten? Not disclosing who the third party is is a violation of U.S. securities Laws.
"RG has been compensated by third party shareholders or with cash from the company on behalf of one or more of the companies mentioned in this opinion. (CRG has been compensated 200,000 shares and fifteen thousand dollars. CRG can receive up to two million two hundred thousand shares.) CRG intends to sell its shares. CRG has sold approximately two hundred thousand shares to date."
"Also, many promotions do not disclose the source of compensation. Enforcement
officials at the Securities and Exchange Commission have told FinancialWire it
is not enough for a company to disclose a "third party payment," but that the
disclosure must include the precise source of the payment as well as the
relationship of the the third party to the issuer, if any."
Capital Research Group Announces Investment Opinion: Rates Can Be Maintained!
August 28, 2003 11:00am
WESTON, FL, 08/13/03 / MARKET WIRE/ -- Watch LocatePLUS Holdings Corp. (OTC BB: LPLHA). LPLHA is quickly emerging as a leading national personal information database source. The Company has just announced great news! Don't miss out on this exciting opportunity! Other stock market standouts include: Micron Technology Inc. (NYSE: MU): Market Underperform, up 2% on 6 million shares, PeopleSoft Inc. (NASDAQ: PSFT): Market Underperform, up 2% on 7 million shares, Xybernaut Corporation (NASDAQ: XYBR): Market Perform, even on 5 million shares.
Advertisement: Explore Within This Space
"The Federal Reserve also made it clear in its testimony on Tuesday that under the present circumstances, monetary policy can be maintained at its current level for a sustainable period of time. The news helped steady the bond market," stated Peter Antipatis. More is available at: www.thesubway.com/sub_comm.asp.
All material herein was prepared by Capital Research Group, Inc. (CRG) based upon information believed to be reliable. The information contained herein is not guaranteed by CRG to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. CRG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on www.thesubway.com or mentioned herein. CRG has been compensated by third party shareholders or with cash from the company on behalf of one or more of the companies mentioned in this opinion. (CRG has been compensated 200,000 shares and fifteen thousand dollars. CRG can receive up to two million two hundred thousand shares.) CRG intends to sell its shares. CRG has sold approximately two hundred thousand shares to date. CRG may sell its shares for less than the target price given in this opinion. CRG's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value. Market commentary provided by Peter Antipatis. CRG will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.
Copyright © 2003 Market Wire, Incorporated
==========================
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18286/August 13, 2003
SECURITIES AND EXCHANGE COMMISSION v. DAVID GANE, JEFFREY D. WELSH, SOUTHERN FINANCIAL SERVICES, INC., SOUTHERN WASTE, INC., DBA STRATEGIC INVESTORS GROUP, CHARLES T. TAMBURELLO, AND CAPITAL RESEARCH GROUP, INC., Civil Action No. 03-61533-CIV-SEITZ (S.D. Fla.)
COMMISSION CHARGES FORMER HEAD OF DICOM IMAGING SYSTEMS, INC. AND FIVE FLORIDA PROMOTERS IN FRAUDULENT STOCK MANIPULATION
On August 13, 2003, the Securities and Exchange Commission ("Commission") filed civil charges in federal district court in Miami, Florida against the former president of Dicom Imaging Systems, Inc. (OTCBB: DCIM), and five Florida stock promoters, alleging that they used the Internet, press releases, spam e-mails, and televised interviews to commit securities fraud through baseless financial projections and the stock promoters' "scalping." Scalping is the practice of recommending the purchase of a stock to the general public while selling the stock at or near the same time. The Commission's complaint also alleges that the promoters touted Dicom's stock but did not disclose all of the compensation they were to receive pursuant to signed agreements.
The Commission's complaint names the following defendants:
David Gane, D.D.S., age 49, of White Rock, British Columbia, Canada. Gane was Dicom's president, CEO, and a member of the board of directors. Dicom was a provider of dental imaging software from 1999 to 2001 but has ceased operations.
Jeffrey D. Welsh, age 53, of Boca Raton, Florida. Welsh wrote investment opinions about Dicom.
Southern Financial Services, Inc. ("SFS"), a Florida financial consulting firm run by Welsh that issued investment opinions.
Southern Waste, Inc., dba Strategic Investors Group ("SIG"), a Florida financial public relations firm run by Welsh that issued investment opinions.
Charles T. Tamburello, age 30, of Weston, Florida. Tamburello wrote investment opinions about Dicom.
Capital Research Group, Inc. ("CRG"), a Florida investor relations firm run by Tamburello, which operates www.thesubway.com website. CRG issued investment opinions about Dicom.
The Commission's complaint alleges that Gane had Dicom hire the stock promoters in June and November 1999 to tout Dicom's stock in return for compensation. Gane supplied the promoters with Dicom's financial projections for the next three years: $24.7 million in revenues and $19.7 million in earnings. Two of the promoters, Welsh and Tamburello, each wrote investment opinions that described Dicom as an investment and set progressively higher targets for its stock price. Welsh issued his investment opinions through SFS and SIG, while Tamburello issued his investment opinions through CRG. In January 2000, Dicom announced that it was restating its financial results for the third quarter of fiscal 1999 from a gain to a loss. Nevertheless, the stock promoters continued to repeat the projections in their investment opinions and set even higher targets for Dicom's stock price. In addition, Gane, who had approved the announcement about the restatement, publicly announced even higher three-year revenue projections in January 2000, $50 million and $60 million, during interviews broadcast on television and over the Internet. Dicom's stock price increased from $5.08 per share, when trading began in November 1999, to a high of $36 in March 2000.
The Commission's complaint also alleges that the stock promoters failed to disclose all of the compensation they were to receive under the agreements signed with Dicom and that they engaged in scalping, resulting in their receipt of over $1.1 million in trading proceeds.
The Commission seeks to enjoin Gane, Welsh, SFS, SIG, Tamburello, and CRG from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and to enjoin Welsh, SFS, SIG, Tamburello, and CRG from future violations of Sections 17(a) and 17(b) of the Securities Act of 1933. The Commission also seeks civil penalties against each of the defendants and disgorgement of ill-gotten gains with prejudgment interest from Welsh, SFS, SIG, Tamburello, and CRG. Finally, the Commission seeks a court order permanently barring Gane from serving as an officer or director of a public company.
SEC Complaint in this matter
sec.gov
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"Also, many promotions do not disclose the source of compensation. Enforcement
officials at the Securities and Exchange Commission have told FinancialWire it
is not enough for a company to disclose a "third party payment," but that the
disclosure must include the precise source of the payment as well as the
relationship of the the third party to the issuer, if any."
(COMTEX) B: Six Companies Promoted by Emails Monday
B: Six Companies Promoted by Emails Monday
Apr 22, 2003 (financialwire.net via COMTEX) -- (FinancialWire / Promotion
Report) World Golf League, Inc. (OTCBB: WGFL), TDS TeleMedecine Limited (OTCBB:
TDST), Airtrax,Inc. (OTCBB: AITX), Cal-Bay International Inc. (OTCBB: CBYI),
Integrated Services Group (OTC: ISVG), and Central Wireless, Inc. (OTCBB:CWIR)
were among microcap issues featured in promotional e-mails Monday, according to
The Promotion Report Newsletter.
Complete information regarding the details behind these promotions can be found
by visiting the Investrend "Investor Resource Center" at
investrendinformation.com and penny-stock-promotions.com
The Promotion Report Newsletter is a subscriber-driven service and accepts no
compensation from any companies. The companies featured in the report are not
necessarily directly involved with any stock promotion activity. It is not at
all uncommon for large shareholders or third parties to promote a company's
stock without the company's knowledge or permission. No correlation is implied
or should be inferred between any entity described in the report and volume or
price activity on any stock.
The U.S. Securities and Exchange Commission cautions investors about stock
promotions on the Internet: "A company's web site may feature a glowing press
release about its financial health or some new product or innovation.
Newsletters that purport to offer unbiased recommendations may suddenly tout the
company as the latest 'hot' stock.
"Unwitting investors then purchase the stock in droves, creating high demand and
pumping up the price. But when the fraudsters behind the scheme sell their
shares at the peak and stop hyping the stock, the price plummets, and investors
lose their money. Fraudsters frequently use this ploy with small, thinly traded
companies because it's easier to manipulate a stock when there's little or no
information available about the company. To steer clear of potential scams,
always investigate before you invest!" the SEC concludes.
Also, many promotions do not disclose the source of compensation. Enforcement
officials at the Securities and Exchange Commission have told FinancialWire it
is not enough for a company to disclose a "third party payment," but that the
disclosure must include the precise source of the payment as well as the
relationship of the the third party to the issuer, if any.
Individuals may report perceived violations resulting in perceived manipulation
of price or volume at sec.gov also found
at the Investrend “Investor Resource Center."
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